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In: Economics

Graph with x axis labeled Real GDP (billions of constant dollars) and the y axis labeled...

Graph with x axis labeled Real GDP (billions of constant dollars) and the y axis labeled Aggregate Expenditure (dollars). The x and y axis have points 0, 200, 400, 600, 700, 800, and 1,000. There are 4 lines. One line is vertical with the plot point of (800,0), and labeled potential GDP. Another line is an upward sloping line starting at (0,0) and at a 45 degree angle. Two lines start around (0,400) and are labeled AE0 and AE1. Between them, it is labeled ΔAE. There are two dotted lines that meet at point (700,700). Between the dotted line and the Potential GDP line, it is labeled ΔY. In the figure, the increase in expenditure is the vertical increase from ________. A:AEO to keniysian Cross B:AE1 to the keynisian cross c:AE0 to AE1

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